Thanks, but no thanks

Cypriot politicians decide that being used to decorate the phone poles is not something they want to be a part of, and turn down legislation that would have lead to the seizure of as much as 9.9% of the value of all bank accounts in that country,

While this is a good thing, don’t forget that this stupid idea was came about because the banks of Cyprus are in serious trouble.  Even with all that Russian money, Cypriot banks are still in sad shape, and defaults are looming if they don’t get an injection of cash from somewhere.  However, after this episode, I can’t imagine who, besides a government, would put money in one.

This is far from over, and I see no reason to change my advice from Sunday.  Time may or may not be short–while we can see the inevitable coming, what we can’t see is the timing.  Just remember, in this sort of thing it’s better to be early than late.

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